Kredivo, an Indonesia-based digital credit platform, announced on Tuesday it and Victory Park Capital Advisors, LLC (VPC), a private credit specialist, announced closed a committed debt facility of up to $100 million to fund consumer loans for Kredivo’s borrowers in Indonesia.
Kredivo reported that the transaction, which closed in the previous quarter, will further propel the tremendous momentum that Kredivo has enjoyed to date, with strong growth and risk metrics, even in this year’s challenging macro environment. While sharing more details about the transaction, Umang Rustagi, co-founder of Kredivo, stated:
“The large capital pool made available via this facility will enable the business to scale even further and get us closer to our goal of serving up to 10m customers in Indonesia over the next few years. We believe that the size and complexity of this facility represents major breakthroughs for Indonesia’s tech and fintech ecosystem. The entire Kredivo team is extremely pleased to have sealed a partnership with VPC, a renowned and sophisticated credit provider active in our space globally.”
Gordon Watson, partner at VPC, further commented:
“We look forward to our partnership with Kredivo. The company presents a unique combination of growth, scale, risk management and financial inclusion in one of the most exciting emerging markets in the world. We are very pleased to anchor our first investment in this region with a business of this caliber and one that is deeply passionate about enabling low-cost access to credit to the mass market.”
Kredivo added it is planning to use the funds to grow and further diversify the funding of its loan book, all of which is 3rd party generated.